Thai investors in digital assets with cryptocurrency exchange Zipmex threatened to gather outside the office of Thailand’s Securities and Exchange Commission (SEC) on Monday, seeking answers regarding their investments in Zipmex Thailand.
The threat came after SEC Secretary General Ruenvadee Suwanmongkol offered an explanation via Facebook Live on Friday about Zipmex’s issues. Many investors have expressed disagreement with the SEC’s handling of this issue.
Ruenvadee claimed the SEC was unaware that Zipmex, Thailand’s second-largest cryptocurrency exchange after Bitkup, had used digital assets deposited by its investors to invest in ZipUp+, until Zipmex announced the suspension of withdrawals by its investors on July 20.
ZipUp+ is a Zipmex Global (Singapore) product, which offers high returns to investors who deposit digital assets, such as Bitcoin, USD Coin, Tether and Ethereum.
She said the SEC ordered Zipmex to explain its investment in ZipUp+ on July 25, but had not heard from the company and would call its executives for a meeting at the SEC.
Ruenvadee also said the SEC has coordinated with the Special Investigations Department, the Economic Crime Enforcement Division and the Cybercrime Investigation Bureau regarding possible legal action against Zipmex.
She assured that the SEC would try to convince Zipmex to reimburse its investors.
Zipmex announced on July 25 via Facebook Live that it had signed a memorandum of understanding with interested parties to begin a due diligence process. He added that the timing of the investment plan will be made public once the agreement is clearer.
Akalarp Yimwilai, co-founder and CEO of Zipmex, also said that Zipmex is working hard to rectify the situation.
Zipmex Thailand is also present in Singapore, Australia and Indonesia. His financial troubles stem from his financial product called ZipUp+, which is tied to two struggling crypto lenders, Babel Finance and Celsius.
Zipmex’s exposure to Babel Finance is around 1.7 billion baht and 183 million degrees Celsius. Babel suspended withdrawals, due to financial difficulties, and Celsius filed for bankruptcy protection.
On Friday, Zipmex Singapore filed for bankruptcy protection in Singapore.